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Aged, Blind and Disabled Manual Policy Manual Number: 125.010 Section: Institutional Medicaid Chapter: Transfer of Assets and Penalty Periods

January 5, 2026 Division of TennCare 17

1. The individual’s reasons for transferring the asset; 2. The individual’s attempts to dispose of the asset for its FMV; and 3. The individual’s reasons for accepting less than the FMV in the exchange; 4. Means of or plans for supporting himself after the transfer; and 5. Relationship, if any, to the person(s) to whom the resource was transferred.

The Eligibility Specialist will document the individual’s cooperation in providing needed information regarding the transfer immediately.

ii. Rebuttal of the Inadequate Compensation Determination

The individual can rebut the determination that fair compensation was not received for the transferred asset.

Request a written statement from the individual that includes a description of attempts to dispose of the asset for its FMV and reasons for accepting less than the FMV.

1. Written Statement

Request that the individual provide written documentation from at least two knowledgeable sources familiar with the type of transferred asset, e.g. real estate agent that contains:

a. The specific reason(s) the transferred resource could not be sold for its FMV; and b. A statement that indicates that the price the individual realized in the transaction was justified under the circumstances.

iii. Successful Rebuttal

If the individual is successful in her rebuttal of either of the above assumptions, do not count any uncompensated asset value as an available asset in determining her eligibility. Document in the case notes a thorough explanation of the decision and the facts upon which it is based.

iv. Unsuccessful Rebuttal

If the individual’s rebuttal is unsuccessful, the penalty period will remain in place.